An Agreement in Principle (AIP) — also called a Decision in Principle (DIP) or mortgage promise — is a statement from a lender confirming how much they’d be willing to lend you, based on initial checks.
It’s not a guarantee. It’s not a formal mortgage offer. But it’s an important step that most estate agents expect to see before they’ll take you seriously as a buyer.
Why You Need One
Estate agents deal with dozens of potential buyers. An AIP demonstrates that you’ve spoken to a mortgage professional, had your finances assessed, and have a realistic budget. Without one, many agents won’t arrange viewings on competitive properties.
Sellers take offers more seriously from buyers with an AIP in place. In a competitive market, it can be the difference between your offer being considered and being overlooked.
What’s Involved
Getting an AIP typically takes 24-48 hours through us. We’ll need basic information about your income, employment, existing debts, deposit, and the type of property you’re looking for.
The lender runs a credit check — some use a soft search (invisible to other lenders), others use a hard search (visible on your credit file). We always use lenders who offer soft searches wherever possible, to protect your credit score during the shopping phase.
What It Does and Doesn’t Mean
It does confirm that a lender has assessed your basic financial position and is willing, in principle, to lend you a specified amount.
It doesn’t guarantee a mortgage. The full application involves more detailed checks — employment verification, property valuation, detailed credit assessment. Issues identified at full application stage can change the outcome.
AIPs typically last 60-90 days. If yours expires before you find a property, we can renew it.
Getting the Amount Right
The amount on your AIP is a maximum, not a target. Just because a lender will offer £300,000 doesn’t mean borrowing £300,000 is comfortable or sensible.
We always work through affordability properly before issuing an AIP — factoring in your actual monthly commitments, lifestyle costs, and future plans. There’s no point getting excited about a budget that leaves you struggling every month.
Ready to get your AIP sorted? Get in touch and we’ll have it done within a day or two.
